You've probably heard by now: Wells Fargo
And why not? Wells Fargo is the recipient of $25 billion in TARP funds provided by taxpayers last fall. Amid the furious (and justified) criticism flung at AIG
No one disagrees: Every bank should be exercising restraint these days, if only because we're flirting with an economy rivaling the Great Depression. Factor in that most banks -- including Wells Fargo -- are padding their books with taxpayer money, and just discussing the possibility of lavish corporate spending seems absurd.
Still, a few of us here at the Fool can play devil's advocate. For one, Wells Fargo isn't even remotely close to the white-flag-in-the-air, four-horsemen-have-arrived kind of mess banks such as Citigroup and Bank of America
I'm not trying to defend Wells Fargo’s attempted Vegas excursion. Whether it wanted taxpayer money doesn't override the fact that it had taxpayer money. Even so, there's a point to be drawn from a Wells press release that states:
Since credit began contracting 18 months ago, Wells Fargo has made almost half a trillion dollars in new loan commitments and mortgage originations. Last quarter alone, we made $22 billion in loan commitments and $50 billion in mortgage originations. That's more than $70 billion or almost three times the amount of the U.S. Treasury's investment in Wells Fargo -- which has begun to benefit from our performance through the dividend we will pay to the Treasury this quarter.
The bottom line is that, yes, it was in bad taste for Wells to plan a lavish recognition party while the economy was sinking into a dark abyss, but lumping every bank into the government-sucking fail pile is hardly fair. If there's one big bank that deserves to keep its corporate independence, it's Wells Fargo.
Fool contributor Morgan Housel doesn’t own shares in any of the companies mentioned in this article. Bank of America is a former Motley Fool Income Investor recommendation. The Fool has a disclosure policy.
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